FDP Fresh Del Monte Produce Inc.

Risks

• We could realize losses and suffer liquidity problems due to declines in sales prices for bananas, pineapples and other fresh produce.
• Due to fluctuations in the supply of and demand for fresh produce, our results of operations are seasonal, and we realize a greater portion of our net sales and gross profit during the first two quarters of each year.
• Crop disease, severe weather, natural disasters and other conditions affecting the environment, including the effects of climate change, could result in substantial losses and weaken our financial condition.
• The markets in which we operate are highly competitive, which could adversely affect our profitability.
• We are subject to material currency exchange risks because our operations involve transactions denominated in various currencies, which could negatively affect our operating results.
• Our strategy of diversifying our product line, expanding into new geographic markets and increasing the value-added services that we provide to our customers may not be successful.
• Impairment of our goodwill, other intangible assets, and long-lived assets has resulted in significant charges that adversely impacted our operating results, and these assets are subject to the risk of future impairments which could adversely impact our operating results.
• Demand for our products is subject to changing consumer preferences, and a reduction in demand for any one or more of our products could negatively impact our sales and profits.
• The loss of one or more of our largest customers, or a reduction in the level of purchases made by these customers, could negatively impact our sales and profits.
• Increased prices for fuel, packaging materials or short-term refrigerated ship charter rates could increase our costs significantly.
• We are subject to the risk of product contamination and product liability claims which could materially and adversely affect our results and financial condition.
• We are subject to legal and environmental risks that could result in significant cash outlays.
• Environmental and other regulation of our business could adversely impact us by increasing our production cost or restricting our ability to import certain products into the United States.
• Environmental regulation of our business, as a response to climate change, could adversely impact us by increasing our compliance costs and could have a material adverse effect on our results and financial condition.
• We are exposed to political, economic and other risks from operating a multinational business which could have a material adverse effect on our results and financial condition.
• Our success depends on the services of our senior executives, the loss of whom could disrupt our operations.
• We may not be able to successfully consummate and manage ongoing acquisition, joint venture and business partnership activities, which could have an adverse impact on our results.
• We face risks in connection with our acquisition of Mann Packing.
• Our indebtedness could limit our financial and operating flexibility and subject us to other risks.
• Our principal shareholders are able to significantly influence all matters requiring shareholder approval.
• A substantial number of our Ordinary Shares are available for sale in the public market, and sales of those shares could adversely affect our share price.
• Our organizational documents contain a variety of anti-takeover provisions that could delay, deter or prevent a change in control.
• Our shareholders have limited rights under Cayman Islands law.
• Increases in wage and benefit costs, changes in laws and other labor regulations, and labor disruptions could impact our financial results and decrease our profitability.
• Risks Relating to Our Information Systems
• Changes in tax laws in any of the jurisdictions in which we operate, or in which we establish holding companies, could cause fluctuations in our overall tax rate and adversely impact our operating results.
• Any failure to adequately store, maintain and deliver quality perishable foods could materially adversely affect our business, financial condition and operating results.
• We are subject to transportation risks.
• Immigration legislation may affect our ability to hire hourly workers and increase our costs.